Acumen Vs Academic: Gross Sends Siegel Back To 'Ivory Tower'

While Roach vs Meyer was an outstanding battle - played out face-to-face in the CNBC Squawk Box cage - the Academic vs Acumen drama playing out between Jeremy 'sluggish' Siegel and Bill 'the bond' Gross on Bloomberg TV is far more entertaining. The constant fall-back to age-old textbook definitions of mean-rerting reality and old normal 'expected' returns ran head first into the sage practitioner world of Gross's 'end of equities' call. While Siegel claims Gross 'totally misunderstands' the real-world citing his Dow 5000 call from 2002; Gross rips back with a swift kick to the credibilities with his: Siegel is "tilting at windmills and he belongs back in his Ivory Tower."

"Everyone has a plan until they get punched in the face" - Tyson (or perhaps KCG's CEO or Siegel and his BTFD mentaility)

In a BusinessWeek interview in May 2000 when asked about the stock market, he replied: 7% year real returns on stocks is what I find over nearly two centuries. I don't see persuasive reasons why it should be any different from that over the intermediate run. In the short run, it could be almost anything.

yes, touting 7% return right when dotcom crash is starting....this guy doesn't know what the heck he is talking about

CONFLICT OF INTEREST

This guy owns 2% of WisdomTree (WETF) ETF seller which IPO'ed in 2011.

I saw the screen shot that said "Wharton Professor", which meant I didin't need to watch this because of the two featured, one puts their money where their mouth is, the other is a few months away from a full pension.

I would tend to agree with you here, DoChen, but I will NEVER forgive Bill Gross for his former defenses of, and toadying and abject servility to, every move on the part of the Fed during the first couple of years of the current world financial crisis. Bill Gross is no hero speaking truth to power, not by a long shot.

Have you ever read PTRAX prospectus? It's packed with the same dog dodo that sank Lehman. Shitty Bonds and CDS. I wouldn't be suprised if PIMCO blew up one day. It's all a mind trick.

It amazes me there is hardly a world spoken about Knights meltdown or the whereabouts of John Corzine but, plenty of coverage of these little bitches whining on Bloomberg and CNBC. Not a word out of Tom Brokaw.

Gross was still dancing back then simply because everyone else was. Now he's put his nose into the air and he realizes that the scent of the rotting carcass has changed direction. Plus he's beginning to see an angry mob out on the horizon.

Exit stage right. He's just dancing to a new tune bro. If I may quote Margin Call......."Be first, be smarter or cheat".

At this point they came in sight of thirty forty windmills that there are on plain, and as soon as Don Quixote saw them he said to his squire, "Fortune is arranging matters for us better than we could have shaped our desires ourselves, for look there, friend Sancho Panza, where thirty or more monstrous giants present themselves, all of whom I mean to engage in battle and slay, and with whose spoils we shall begin to make our fortunes; for this is righteous warfare, and it is God's good service to sweep so evil a breed from off the face of the earth."

"What giants?" said Sancho Panza.

"Those thou seest there," answered his master, "with the long arms, and some have them nearly two leagues long."

"Look, your worship," said Sancho; "what we see there are not giants but windmills, and what seem to be their arms are the sails that turned by the wind make the millstone go."

"It is easy to see," replied Don Quixote, "that thou art not used to this business of adventures; those are giants; and if thou art afraid, away with thee out of this and betake thyself to prayer while I engage them in fierce and unequal combat."

isnt it academia that led us to this point in the first place, what we constantly forget is that for something to become common knowledge someone had to test it first before that it was simply academia, the first guy who put his dick in a plug socket was an academic gaining acumen, not to do it again.

Now listening to academics with their untested theories about stocks and the economy, is a little bit like being stood next to our hero as he approaches the plug socket, it sounds a reasonable idea but we dont know whats gonna happen till he burns his dick off.

took his course at Wharton. Classes were packed. Mr. perma bull himself. Did not see the Nobel price winners fuck up LTCM or the incredible value opportunity in div.yield stocks in 99 nor the dot com bubble.
Ivory tower is higher than Burj Kalifa

hey billy boy, still waiting for the fed to buy up all of those mortgage backed securities in some massive lsap??? bwaaahahahahhaaaaa......wait, wait, qe3 is coming, really............ha ha ha..................how many times does bernanke have to kick you in the ass mr. gross?????????......too funny...........two clueless "pundits", both stuck in a dying paradigm.................................

Say what one will about Bill Gross, he's not an uppity grad student, and Siegel is out of place dressing him down as one. But there's really no substance on either side here.

A discussion worth having would be: how long can even the "least unattractive" dividend-paying stocks continue to outpace economic growth, by how much, and why. Of course, no one who properly discounts the new reality of our flashy-crashy equities market is allowed to talk stocks on TV. And if they were, I probably still wouldn't watch.